The company had high hopes as it went to market last year, its concept appeared compelling. But Firefly also chose to offer its own wireless service and customer service, using the infrastructure of other carriers to act as an independent so-called Mobile Virtual Network Operator (MVNO). The costs of customer service proved expensive, hurting the company’s performance.

So the company’s original investors, Sevin Rosen Funds and ComVentures, which had helped pump $26 million into the company last year, chose not to invest again.

GIV Venture Partners and Leo Capital Holdings are the remaining investors, and according to VentureWire.